Victorian energy bills hit 10-year high

Victorian household energy bills have reached a 10-year high after five years of increases, a report shows.

The average bill has increased by almost a third from 2001 to 2012, according to a report commissioned by Victoria's five electricity distribution businesses.

The average Victorian residential electricity bill without electric off-peak hot water was more than $1200 in 2012, up from about $950 in 2001, the report said.

This followed a decline in prices from 2002 to 2007, when they reached a low of about $820.

"The annual bill of a residential electricity user on a single-rate tariff in Victoria ... decreased in real dollar terms in every year from 2002 through 2007," said the report into the causes of residential electricity bill increases from 2001-2012.

"Costs then increased in real dollar terms from 2008 through 2012."

The report said the price increases were driven by government policies such as solar feed-in tariff costs and smart meters, as well as cost increases relating to the retail and wholesale parts of the supply chain.